Classic financial agency theory recommends compensation through stock options rather than shares to induce risk neutrality in otherwise risk averse agents. In an experiment, we find that subjects acting as executives do also take risks that are excessive from the perspective of shareholders if compensated through options. Compensation through restricted company stock reduces the uptake of excessive risks. Even under stock-ownership, however, experimental executives continue to take excessive risks—a result that cannot be accounted for by classic incentive theory. We develop a basic model in which such risk-taking behavior is explained based on a richer array of risk attitudes derived from Prospect Theory. We use the model to derive hypotheses on what may be driving excessive risk taking in the experiment. Testing those hypotheses, we find that most of them are indeed borne out by the data. We thus conclude that a prospect-theory-based model is more apt at explaining risk attitudes under different compensation regimes than traditional principal-agent models grounded in expected utility theory. [less ▲]

In a series of experiments conducted in Belgium (Wallonia and Flanders), France and the Netherlands, we compare behavior regarding tax evasion and welfare dodging, with and without information about ... [more ▼]

In a series of experiments conducted in Belgium (Wallonia and Flanders), France and the Netherlands, we compare behavior regarding tax evasion and welfare dodging, with and without information about others’ behavior. Subjects have to decide between a ‘registered’ income, the realization of which will be known to the tax authority for sure, and an ‘unregistered’ income that will only be known with some probability. This unregistered income comes from self-employment in the Tax treatment and from black labor supplementing some unemployment compensation in the Welfare treatment. Subjects have then to decide on whether reporting their income or not, knowing the risk of detection. The results show that (i) individuals evade more in the Welfare treatment than in the Tax treatment; (ii) many subjects choose an option that allows for tax evasion or welfare fraud but report their income honestly anyway; (iii) examples of low compliance tend to increase tax evasion while examples of high compliance exert no influence; (iv) tax evasion is more frequent in France and the Netherlands; Walloons evade taxes less than the Flemish. There is no cross-country difference in welfare dodging. [less ▲]

In our last article, we gave some properties of Sudoku matrices. We here investigate some properties of the Sudoku submatrices. We first deal with their eigenvalues and try to find an upper bound on them ... [more ▼]

In our last article, we gave some properties of Sudoku matrices. We here investigate some properties of the Sudoku submatrices. We first deal with their eigenvalues and try to find an upper bound on them, and then follow exactly the same structure as in our last article to establish a connection between Sudoku matrices’ properties and sudoku submatrices’ properties. [less ▲]

Ever since the creation of the General Court (“GC”), the effectiveness of judicial review in European Union (“EU”) competition cases has sparked intense scholarly debates. This paper seeks to further ... [more ▼]

Ever since the creation of the General Court (“GC”), the effectiveness of judicial review in European Union (“EU”) competition cases has sparked intense scholarly debates. This paper seeks to further contribute to this discussion in three ways. First, it devotes some space to fundamental, yet often overlooked questions, such as the goals or functions of judicial review and why judicial review of administrative decisions is important; particularly so in competition law matters. Second, this paper attempts to throw some empirical light on the GC’s judicial review of European Commission (“Commission”) decisions in the field of competition law. Third, it places a specific emphasis on the particular situation of abuse of dominance law, where the GC has exercised its judicial review power with more restraint than in other areas of competition law (such as restrictive agreements and mergers). With these goals in mind, this paper follows a five-stage progression. First, on the basis of a survey of the relevant legal, economic and political science literature, it defines the functions of judicial review and identifies a set of indicators which can be used to assess the performance of the GC’s judicial scrutiny (Part I). Second, it explains why judicial review in EU competition law cases is of critical importance notably given the institutional and procedural deficiencies of the EU enforcement structure (Part II). Third, it discusses the nature and standard of review currently applied by the GC with a particular focus on the degree to which the GC is willing to review “complex economic matters” (Part III). Fourth, it provides some quantitative data on the case-law of the GC to assess whether several goals or functions attributed to judicial review by the scientific literature are met (Part IV). Finally, this paper takes a closer look at the (controversial) case-law of the GC in the field of Article 102 of the Treaty on the Functioning of the European Union (“TFEU”) (Part V). [less ▲]

We present a comparative study of the thermal emission of the transiting exoplanets WASP-1b and WASP-2b using the Spitzer Space Telescope. The two planets have very similar masses but suffer different ... [more ▼]

We present a comparative study of the thermal emission of the transiting exoplanets WASP-1b and WASP-2b using the Spitzer Space Telescope. The two planets have very similar masses but suffer different levels of irradiation and are predicted to fall either side of a sharp transition between planets with and without hot stratospheres. WASP-1b is one of the most highly irradiated planets studied to date. We measure planet/star contrast ratios in all four of the IRAC bands for both planets (3.6-8.0um), and our results indicate the presence of a strong temperature inversion in the atmosphere of WASP-1b, particularly apparent at 8um, and no inversion in WASP-2b. In both cases the measured eclipse depths favor models in which incident energy is not redistributed efficiently from the day side to the night side of the planet. We fit the Spitzer light curves simultaneously with the best available radial velocity curves and transit photometry in order to provide updated measurements of system parameters. We do not find significant eccentricity in the orbit of either planet, suggesting that the inflated radius of WASP-1b is unlikely to be the result of tidal heating. Finally, by plotting ratios of secondary eclipse depths at 8um and 4.5um against irradiation for all available planets, we find evidence for a sharp transition in the emission spectra of hot Jupiters at an irradiation level of 2 x 10^9 erg/s/cm^2. We suggest this transition may be due to the presence of TiO in the upper atmospheres of the most strongly irradiated hot Jupiters. [less ▲]

Fair trade (FT) organisations have been quite early taken as examples of social enterprises (SE) and have contributed to the shaping of the SE concept. The goal of this article is to examine more deeply ... [more ▼]

Fair trade (FT) organisations have been quite early taken as examples of social enterprises (SE) and have contributed to the shaping of the SE concept. The goal of this article is to examine more deeply, both at a conceptual and at an empirical level, to what extent FT organisations can be considered as social enterprises. First, we introduce different theoretical frameworks of SE and examine FT in the context of each of these frameworks. In a second step, we use an empirical study on fair trade social enterprises (FTSEs) across four European countries to illustrate and deepen the links between FT and SE, focusing on the goals and the governance structures of FTSEs. It appears that all FTSEs combine in some way economic, social and sometimes also political goals. FTSEs are thus in line with the "hybrid-goal" nature of SEs. FTSEs' governance is also quite specific and often innovative in terms of organisational architecture and stakeholders' involvement. Some FTSEs are closer to the European – participatory – approach of social enterprise, while others are closer to US – individual – approaches. Finally, the governance structures of FTSEs seem to reflect quite well their goal mix. This article provides a more solid basis for the often implicit link between FT and SE. Future researches could use our work to explore specific topics of the SE literature (e.g. stakeholders' involvement) in the context of FT. The FT example could also be used to examine further the shifting boundaries of the SE reality. The originality of this article is to apply the SE concept to a specific field and to show how, within this field, there is at the same time (1) a diversity of organisations, reflecting the diversity of SE approaches and (2) a range of specific features (especially in terms of goal mix and governance) distinguishing SEs from other types of organisations operating in the same field. [less ▲]

n this paper, wee propose a model for regulatory capture that is based on information transmission and asymmetric information. In a three-tier model, a regulator is charged by a political principal to ... [more ▼]

n this paper, wee propose a model for regulatory capture that is based on information transmission and asymmetric information. In a three-tier model, a regulator is charged by a political principal to provide a signal for the type of a regulated firm. Only the firm can observe his type and the production of a correlated signal with a given accuracy is costly for the regulator. The firm can costlessly provide an alternative signal of lower accuracy that is presented to the regulator. In a self-enforcing equilibrium, the regulator transmits the firm-produced signal, internalizes its own savings in information cost and the firm enjoys higher information rents. The main feature of soft capture is that it is not based on a reciprocity of favors but on a congruence of interests between the firm and the regulator. [less ▲]

In this paper, we investigate the convergence process within the European Union (27 countries). More particularly, we study the convergence process of the new entrants from Central and Eastern Europe and ... [more ▼]

In this paper, we investigate the convergence process within the European Union (27 countries). More particularly, we study the convergence process of the new entrants from Central and Eastern Europe and of the 15 Western countries between 1990 and 2007. Applying a panel approach to the convergence equation derived by Mankiw et al. (1992) from the Solow model, we highlight the existence of heterogeneity in the European Union and show that new entrants and former members of the European Union can be seen as belonging to significantly differ- ent groups of convergence. The existence of heterogeneity in the European Union or the Eurozone might affect their stability as the recent Greece’s sovereign debt crisis illustrates it. [less ▲]

SNOMED- CT is is a concept-oriented and machine-readable medical terminology which has gained popularity this last ten years. It has been proposed as the reference terminology for use in electronic ... [more ▼]

SNOMED- CT is is a concept-oriented and machine-readable medical terminology which has gained popularity this last ten years. It has been proposed as the reference terminology for use in electronic medical records and is supposed to cover the entire field needed to care and cure. This paper is examining its complexity and ability to cover the fields of general practice/family medicine, presented as the focus point of information in medicine. [less ▲]

In Belgium, Saint Nicholas is a very important figure for the children, as he brings them toys and candys, on December 6th. We look here at the historical saint, at his meaning and at the celebrations ... [more ▼]

In Belgium, Saint Nicholas is a very important figure for the children, as he brings them toys and candys, on December 6th. We look here at the historical saint, at his meaning and at the celebrations linked to Saint Nicholas' Day and to Christmas, in which is involved another "Saint Nicholas", Santa Claus... [less ▲]

Fetching e-mails is a daily task. However, when an e-mail size overcomes a given threshold, e-mail communication becomes more difficult, because slow. This is principally due to the outgoing speed of ... [more ▼]

Fetching e-mails is a daily task. However, when an e-mail size overcomes a given threshold, e-mail communication becomes more difficult, because slow. This is principally due to the outgoing speed of cheap Internet connections. We propose here a mechanism which limits this problem. [less ▲]

The Sudoku game has gained much interest for a dozen years. It is now put in various magazines and mathematical research is more and more interested in it. This document aims at providing some newer ... [more ▼]

The Sudoku game has gained much interest for a dozen years. It is now put in various magazines and mathematical research is more and more interested in it. This document aims at providing some newer information about the mathematical properties of the Sudoku, but not according to graphs' theory. We do not speak about the ``minimum number of clues,'' but about Sudokus' matrix interpretation: general properties of its determinant, in relation to eigenvalues; transpose; non-Hermitian character; neither symmetric nor antisymmetric character; non-normal character; non-orthogonal character when the matrix has a determinant of 0, conjecture when the determinant is not equal to 0; order; condition number. [less ▲]

P2P (Peer-to-Peer) technology comprises various ways to exchange information rapidly, each participant sharing a portion of his own resources. Anyway, despite of the numerous advantages of using P2P, a ... [more ▼]

P2P (Peer-to-Peer) technology comprises various ways to exchange information rapidly, each participant sharing a portion of his own resources. Anyway, despite of the numerous advantages of using P2P, a real problem is often encountered when using cheap internet connections: web surfing becomes so slow that it seems impossible to reach a web page, for the P2P’s user. It is especially the case when using connections with a low upload speed. The problem has also an importance, even if it is minor, when using high-speed connections (VDSL, ... ), as it is also a waste of capacity. [less ▲]

As more and more (principally free) Linux PC-distributions (commonly called “distro’s”) are appearing on the Internet, a lack is observed for handhelds’ Linux distributions, especially for Pocket PC’s (C ... [more ▼]

As more and more (principally free) Linux PC-distributions (commonly called “distro’s”) are appearing on the Internet, a lack is observed for handhelds’ Linux distributions, especially for Pocket PC’s (C). This article summarizes the most important (and recent) points about this fact, and tries to cover the whole subject with not-too-technical details, giving a basical overview about the different O.S. which are available for handhelds devices. [less ▲]

Many studies have been written about children's development, and their behaviours during the phases they encounter before becoming adults. Thus, some clear links can be established between children's ... [more ▼]

Many studies have been written about children's development, and their behaviours during the phases they encounter before becoming adults. Thus, some clear links can be established between children's development and A.I. future trends. We here summarize the most important comparison characteristics. [less ▲]

Over 300 extrasolar planets (exoplanets) have been detected orbiting nearby stars. We now hope to conduct a census of all planets around nearby stars and to characterize their atmospheres and surfaces ... [more ▼]

Over 300 extrasolar planets (exoplanets) have been detected orbiting nearby stars. We now hope to conduct a census of all planets around nearby stars and to characterize their atmospheres and surfaces with spectroscopy. Rocky planets within their star's habitable zones have the highest priority, as these have the potential to harbor life. Our science goal is to find and characterize all nearby exoplanets; this requires that we measure the mass, orbit, and spectroscopic signature of each one at visible and infrared wavelengths. The techniques for doing this are at hand today. Within the decade we could answer long-standing questions about the evolution and nature of other planetary systems, and we could search for clues as to whether life exists elsewhere in our galactic neighborhood. [less ▲]

The exploration of Earth-like exoplanets will be enabled at mid-infrared wavelengths through technology and engineering advances in nulling interferometry and precision formation flying. Nulling ... [more ▼]

The exploration of Earth-like exoplanets will be enabled at mid-infrared wavelengths through technology and engineering advances in nulling interferometry and precision formation flying. Nulling interferometry provides the dynamic range needed for the detection of biomarkers. Formation flying provides the angular resolution required in the mid-infrared to separately distinguish the spectra of planets in multi-planet systems. The flight performance requirements for nulling have been met and must now be validated in a flight-like environment. Formation-flying algorithms have been demonstrated in the lab and must now be validated in space. Our proposed technology program is described. [less ▲]

This paper presents a model where young and old workers compete for one type of jobs in the presence of retirement opportunity. Within this framework, we show that increased retirement opportunities (such ... [more ▼]

This paper presents a model where young and old workers compete for one type of jobs in the presence of retirement opportunity. Within this framework, we show that increased retirement opportunities (such as early retirement) has most of the time a depressing impact on the unemployment rate. Indeed the number of vacancies posted by firms is influenced by the probability that an old worker is going into retirement. We show that the degree to which younger workers are influenced by retirement of older workers depends on the relative productivity of young and older workers. It is only when older workers are much more productive than young workers that retirement may benefi t to unemployment. [less ▲]

The ratio bias – according to which individuals prefer to bet on probabilities expressed as a ratio of large numbers to normatively equivalent or superior probabilities expressed as a ratio of small ... [more ▼]

The ratio bias – according to which individuals prefer to bet on probabilities expressed as a ratio of large numbers to normatively equivalent or superior probabilities expressed as a ratio of small numbers – has recently gained momentum, with researchers especially in health economics emphasizing the policy importance of the phenomenon. Although the bias has been replicated several times, some doubts remain about its economic significance. Our two experiments show that the bias disappears once order effects are excluded, and once salient and dominant incentives are provided. This holds true for both choice and valuation tasks. Also, adding context to the decision problem does not change this outcome. No ratio bias could be found in between-subject tests either, which leads us to the conclusion that the policy relevance of the phenomenon is doubtful at best. [less ▲]

In this paper we survey a number of theoretical and empirical studies in order to propose explanations to the fall of labor force participation at older age. Starting from the largely studied effect of ... [more ▼]

In this paper we survey a number of theoretical and empirical studies in order to propose explanations to the fall of labor force participation at older age. Starting from the largely studied effect of social security schemes on labor supply, we explore the employers behavior and the role of governments in the development of early retirement schemes. We show that early retirement is the result of a global agreement between firms and government where workers have incentives to early exit the labor market due to generous non actuarial bene ts. Firms have an advantage to separate older workers because they are costly compare to young workers and governments hope that by pushing elderly into early retirement they will solve the massive unemployment problem. [less ▲]

Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental investigations. This may however raise an issue of sequentiality of effects as later choices ... [more ▼]

Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental investigations. This may however raise an issue of sequentiality of effects as later choices may be influenced by earlier ones. This paper reports instead between-subject results on the effect of monetary stakes on risk attitudes for small probability prospects in a laboratory experiment. Under low stakes, we find the typical risk seeking behavior for small probabilities predicted by the prospect theory. But under high stakes, we provide some evidence that risk seeking behavior is dramatically reduced. This could suggest that utility is not consistently concave over the outcome space, but rather contains a convex section for very small amounts. [less ▲]

This working paper is divided into two parts. The first part provides a reminder and theoritical background in fluid thermodynamics (first law, second law, ideal/real gases, liquids, thermodynamic ... [more ▼]

This working paper is divided into two parts. The first part provides a reminder and theoritical background in fluid thermodynamics (first law, second law, ideal/real gases, liquids, thermodynamic processes). The second part applies the theory to the study of a simple Organic Rankine Cycle, by modeling the 4 main processes (pumping, evaporation, expansion, condensation). [less ▲]